Objective: To explain capital investment, and debtor control and collection of debts. Topic: Capital Investment Format: Report The following is the structure of your report:

a) Introduction Provide a brief scenario of a business that needs to purchase a machine for the production department. Provide information on initial outlay, expected profit, expected net cash flows, expected cost of capital for three options to purchase a machine. Each option should have a life span of 5 years and a scrap value

. b) Calculate the Accounting Rate of Return for all the options of purchasing the machine.

c) Calculate the Payback Period for all the options of purchasing the machine

. d) Calculate the Net Present Value for all the options of purchasing the machine.

e) Calculate the Internal Rate of Return for all the options of purchasing the machine. f) Provide a conclusion on the choice of option chosen to purchase the machine, supported with reasons for making the choice. g) Students need to provide references using the APA format